Eastside Drilling sees benefit from 2017 Craft Modernization and Tax Reform Act
Eastside Distilling announced that it has begun benefiting from the Craft Modernization and Tax Reform Act of 2017. Enacted by Congress as part of the 2017 tax legislation package, the Tax Act reduced the Federal Excise Tax from $13.50 to $2.70 per gallon for the first 100,000 proof gallons per year, an 80% tax reduction. Under the new Tax Act, the FET payable by Eastside for the month of January 2018 was approximately $90,000 less than the amount payable under the rates that were effective prior to January 1, 2018. In the event that Eastside's production reaches the 100,000 proof gallons per annum needed to fully utilize the tax benefits of the Tax Act, annual savings will exceed $1M. The Tax Act expires in two years unless renewed.